The Saudi Central Bank provided 50 billion riyals ($ 13.32 billion) to boost liquidity in the banking sector.
According to Reuters, the move came after the collapse in consumer spending in April as a result of the Corona virus pandemic.
The Saudi Arabian Monetary Agency indicated that the incentive measure aims to help banks support and finance the private sector, while the economy suffers from low oil prices and measures to contain the virus.
The impact of such measures was evident in the April monetary agency data released late on Sunday and showed a sharp drop in consumer spending, as POS transactions declined 33 percent, and 35 percent cash withdrawals a year ago.
Arqaam Capital said in a research note that the April monetary agency data gives the first indication of the impact of the curfew as consumer spending fell 35 percent year on year despite Increased spending on homosexual food during Ramadan and families turning to storage.
The corporation said that the banking sector is still recording good performance indicators, which enhances its capabilities to face challenges and crises.
The Foundation's data on Sunday showed that loans to the private sector increased in April by 12.2 percent year on year.
The central bank’s net foreign assets fell for the second month in a row in April, as Saudi Arabia transferred tens of billions of dollars to support sovereign wealth fund investments abroad.
